The Federal Opposition has accused the Government of pandering to xenophobia and pursuing likely fruitless negotiations with China on a free trade deal.

Prime Minister Tony Abbott travelled to Indonesia and Brunei this week, where he set a one-year target to secure such a deal.

Mr Abbott has made his progress on the agreement a centrepiece of his international diplomatic efforts abroad.

But the Opposition's trade spokesman Richard Marles has told Lateline the deal will not be struck unless the Coalition dumps a plan to tighten regulation on foreign investment.

"It will be impossible for the Abbott Government to conclude a free trade agreement with China, so long as they take a position of reducing the threshold in relation to the Foreign Investment Review Board (FIRB)," he said.

Investment policy no roadblock: Bishop

She has rejected the Opposition's claims that foreign investment policy will be a roadblock in negotiations with China.

"That's a rather insulting statement to China, because during Prime Minister Abbott's meeting with president Xi Jinping, the notion of a free trade agreement was raised and enthusiastically welcomed by China," Ms Bishop told the ABC.

"I think Labor is on the wrong page with this one.

"Our policies were public before the last election and I have no doubt China is aware of the different policy positions of parties."

Ms Bishop will pursue free trade agreement negotiations with Japan and Korea and seek to build links for the Coalition's university exchange program, known as the New Colombo Plan, during her trip.